IDC: The 'real' opportunity for IoT is in the enterprise

Analyst urges the industry to look past the IoT's 'consumer face'

IDC has said the "real" opportunity for the Internet of Things (IoT) lies in the enterprise and not the consumer space, as it releases its latest forecast for explosive growth in the space.

The global IoT market will grow from $655.8bn (£429.2bn) in 2014 to $1.7tn in 2020, IDC said, pegging its compound annual growth rate at 16.9 per cent over the period.

Devices, connectivity and IT services will account for the lion's share of the market over the next five years, but sensors used on kit will also account for a key segment.

Consumer-style connected devices such as smartcars, wearables and connected fridges have grabbed headlines when it comes to IoT so far, but IDC said behind the consumer face lies a true opportunity for the business-to-business market.

"While wearable devices are the consumer face of the IoT, and where recognition of IoT appears to begin, the real opportunity remains in the enterprise and public sector markets," said Vernon Turner, senior vice president of IDC Enterprise Systems.

"The ripple effect of IoT is driving traditional business models from IT-enabled business processes to IT-enabled services and finally to IT-enabled products, which is beginning to disrupt the IT status quo."